Japan’s fall in jobless boost Asian markets
ASIAN stocks advanced for a second day yesterday after reports in Japan showed an unexpected drop in unemployment and a rise in household spending, Bloomberg News reported.
Mizuho Financial Group Inc climbed to a three-month high, on speculation the improving economy will allow the Bank of Japan to lift interest rates, widening lenders’ profit margins.
“The positive economic data from Japan is helping sentiment for the rest of the region,” said Leslie Phang, who helps manage about US$1 billion at Commonwealth Private Bank in Singapore.
The Morgan Stanley Capital International Asia-Pacific Index added 0.7 percent to 149.26 at 8:01pm in Tokyo. Technology stocks rose after Sanyo Electric Co forecast its first annual profit in four years and CJ Investment & Securities Co said earnings at LG.Philips LCD Co will improve. Japan’s Nikkei 225 Stock Average added 0.5 percent to 17,672.56, while the broader Topix index gained 0.8 percent. Mitsui O.S.K. Lines Ltd advanced after UBS AG reaffirmed its bullish stance on shipping companies.
BHP Billiton Ltd led mining stocks higher in Australia as prices of metals including copper advanced and on speculation of takeovers within the industry. Coles Group Ltd dropped after US buyout company Kohlberg Kravis Roberts & Co abandoned its nine-month pursuit of the Australian retailer.
Benchmarks rose, except in Hong Kong, Indonesia, Malaysia, Pakistan and Sri Lanka. Thailand was little changed.
Mizuho, Japan’s second-largest lender by assets, rose 2.3 percent to 864,000 yen (US$7,100), its highest close since February 23. Sumitomo Mitsui Financial Group Inc, the third largest, advanced 1.7 percent to 1.18 million yen.
Sanyo, the world’s largest maker of rechargeable batteries, jumped 10 percent to 213 yen.
BHP Billiton, the world’s biggest mining company, gained 1.8 percent to A$31.70 (US$25.98). Rio Tinto Group, the third largest, climbed 2.4 percent to A$96.36.